Washington.- The Biden administration will provide up to $1.6 billion in financing to Texas Instruments to build three new manufacturing plants, the latest in a series of grants aimed at increasing the country’s semiconductor production.
The funds will help the Texas-based company build two plants in Sherman, Texas, and a facility in Lehi, Utah, Commerce Department officials announced Friday.
The subsidy is intended to boost domestic supply of semiconductors, the tiny chips that are key components for electronic devices.
The investment “will enhance America’s economic security and mitigate supply chain vulnerabilities that have been exposed during the pandemic,” Laurie E. Locascio, the undersecretary of Commerce for Standards and Technology, said during a call with reporters Thursday night.
In addition to this financing, the Commerce Department will provide up to $3 billion in credit to Texas Instruments, officials said.
The company also hopes to obtain federal tax credits that could cover 25 percent of the cost of the building and factories with production equipment.
The funds will support the company’s investment of more than $18 billion to build new facilities.
Funding comes from the CHIPS Act, which was passed by Congress with bipartisan support in 2022.
The legislation is intended to boost domestic semiconductor production and reduce the nation’s reliance on Asian countries for supplies.
Only 10 percent of the world’s semiconductors are manufactured in the United States, down from 37 percent in 1990.
Ramping up chip manufacturing has been a major goal for President Biden, whose economic agenda has focused in part on boosting American manufacturing and bringing back jobs that have moved overseas in recent decades.
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